Commodity Markets Update: Cotton and Crude Oil Rally Amid Tariff News

Cotton futures experienced positive momentum as contracts rose between 72 to 108 points on Wednesday. Additionally, crude oil futures ended the day with a gain of $3.14 per barrel following a significant rebound from its lowest price point since February 2021. Meanwhile, the US dollar index remained stable throughout the trading session.

During the latter part of the Wednesday session, President Trump announced a 90-day pause on tariffs targeting specific countries, with China being the notable exception. A blanket 10% tariff will remain in place for all countries, and tariffs on imports from China have risen dramatically to 125%.

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Cotton Market Overview

The Cotlook A Index increased by 270 points on Tuesday, reaching 77.95 cents per pound. On April 8, ICE cotton stocks remained steady with a total of 14,488 bales certified for trading. The USDA’s Adjusted World Price (AWP) also saw an uptick, rising by 158 points last week, now standing at 55.22 cents per pound.

Future Cotton Prices

May 25 Cotton closed at 66.63, up 108 points.

Jul 25 Cotton closed at 67.31, up 98 points.

Dec 25 Cotton closed at 68.47, up 72 points.

On the date of publication,
Austin Schroeder
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy
here.

 

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